With interest rates shifting and remortgage deals changing weekly, choosing between a fixed or tracker mortgage in 2025 isn’t just about the numbers, it’s about what fits your goals, budget, and risk tolerance. In this guide, we break down the pros and cons of both options, share real examples from clients we've helped, and give you the insight you need to make the right move this year.
Jun 30, 2025
With mortgage rates shifting and the base rate in motion, remortgaging in 2025 comes with one big question: Should you go fixed or tracker?
This guide breaks it down simply, using real-world insight and examples from clients we’ve helped recently at Mortgage Brokers Near Me.
2025 has already seen two base rate cuts, with the Bank of England holding the rate at 4.5% in March. Lenders are reacting quickly — tracker rates are falling, and fixed rates are becoming more competitive again.
The result? Confusion for homeowners, especially those whose fixed deals are ending or those weighing up a remortgage.
A fixed-rate mortgage locks in your interest rate for a set period commonly 2, 5, or 10 years. Your monthly payments stay the same, even if the base rate changes.
Best for: Risk-averse borrowers, fixed budgets, or first-time buyers looking for stability.
Quote from Will Sharman, Mortgage Broker: “We’re seeing more clients asking, ‘Should I fix now or hold out?’ and the right answer depends entirely on your situation, risk tolerance, and budget. That’s why personalised advice is more important than ever.”
A tracker mortgage follows the Bank of England base rate, usually with a small fixed margin added on top (e.g. base + 0.75%). This means your monthly payments rise or fall as the base rate changes.
Best for: Confident borrowers, short-term deals, or those expecting rates to fall further.
Most of our clients are opting for:
People remortgaging right now are being cautious but many are choosing flexible options with room to switch if things improve.
In early 2024, we helped a client in Reading weighing up a remortgage decision. Their two-year fix was ending, and they were unsure whether to refix or go tracker.
They had a £300,000 mortgage, 60% LTV.
Over two years, they could save £2,160 by going tracker assuming rates don’t rise again.
Note: Rates shown above are based on July 2025 averages and are subject to change. Use this as a guide to compare how flexibility, fees, and risk vary not just the rate.
Use this simple guide to help you decide:
1. Do you need predictable payments to budget each month?
→ Yes – A Fixed Rate Mortgage is likely the safer option. (See Section : What Is a Fixed-Rate Mortgage)
→ No – Consider your comfort with rate changes (see Section: What Is a Tracker Mortgage)
2. Are you comfortable with the possibility of your monthly payments increasing if rates rise?
→ Yes – A Tracker Mortgage could work well, especially if rates continue to fall. (See Section: What Is a Tracker Mortgage)
→ No – A Fixed Rate will give you peace of mind and payment stability. (See Section: What Is a Fixed-Rate Mortgage)
3. Do you believe interest rates will drop or remain low in the near future?
→ Yes – A Tracker Mortgage might offer short-term savings.
→ Not Sure – A 2-Year Fixed Deal gives you flexibility while rates settle. (See Section: What Most People Are Choosing Right Now)
Earlier this year, we worked with Hassan, a freelance designer based in Birmingham. His fixed deal was ending, but as a self-employed borrower, he was worried lenders wouldn’t offer him competitive tracker options due to income fluctuations.
We reviewed his last 2 years of SA302s, checked his affordability, and compared both fixed and tracker options based on realistic earnings.
In the end, Hassan chose a 2-year fixed to maintain budgeting stability and revisit his income structure before making a longer-term decision.
When your fixed or tracker deal ends, you’ll revert to your lender’s Standard Variable Rate (SVR) usually much higher. This can add hundreds to your monthly payment.
Key tip:
If your deal ends within the next 6 months, you can often lock in a new one early and we can help you do that without a penalty in most cases.
Only if your deal has no ERC or very low fees. Always check the fine print.
It depends on your financial situation and goals. Fixed is safer; tracker may be cheaper if rates keep falling.
100%. A 30-minute chat with a broker could save you thousands in the long run.
“We didn’t want surprises, but after talking through the options with Will, the tracker made more sense for now. Having someone break it down for us gave us the confidence to go for it.”
We compare live fixed and tracker deals across dozens of lenders, including broker-only products not available direct. We’ll also:
📞 Book your free remortgage review today. No pressure. Just clarity and expert guidance.
Whether you want to lock in peace of mind or ride the tracker wave while rates fall, we’ll help you make the smartest choice for your situation.
Get in Contact below to get a free remortgage quote from Will and the team no obligation, just expert help.
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Mortgage Brokers Near Me LTD is an Appointed Representative of The Right Mortgage LTD which is authorised and regulated by the Financial Conduct Authority. The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. The Financial Conduct Authority does not regulate Will Writing and some forms of Trusts and Buy to Lets. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.
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